Approval of calculation methods

Section 31h Gaswirtschaftsgesetz (Natural Gas Act) requires transmission companies and transportation rights holders to provide access to their networks for cross-border gas shipments on the basis of cost-reflective, non-discriminatory tariffs. The methods for calculating the rates require the ex ante approval of the E-Control Commission.

The companies’ calculation methods must include detailed rules for the calculation of tariffs on the basis of capital costs, depreciation and operating costs. Applications for approval of the tariff calculation methods must also be accompanied by tariff benchmarking analyses indicating the reasonableness of the resultant rates in comparison with those for like services elsewhere in Europe. Once approved, the tariff calculation methods must be posted on the transmission company's/transportation rights holder's website.

The approved calculation methods may include investment incentives in the form of reserves created by allocating the proceeds of capacity auctions and the sale of interruptible capacity, which may be used to invest in capacity expansions. Alternatively, such reserves may be used after four years to reduce the transportation charges.

Approved calculation methods

TAG

TAG's approved methods
www.taggmbh.at/allsite_pr...iew/3/frontend?pageid=378